In Czech Republic benchmark interest rate is set by the Czech National Bank (Ceská Národní Bank CNB). The official interest rate is the two-week repo rate, a rate at which commercial banks are allowed to place excess funds at the end of the day with the Central Bank.
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The Czech National Bank kept its two-week repo rate unchanged at 3.5% in February 2026, as widely anticipated, maintaining the level seen since May 2025. Policymakers have repeatedly cited domestic risks, including the budget deficit, rapidly rising service and housing costs, and wage growth, as obstacles to further monetary easing. Meanwhile, headline inflation eased more than expected to a nine-year low of 1.6% in January, down from 2.1% in December, but closely monitored services inflation remained elevated at 4.7%. Czech policymakers may have scope to cut rates this year, though further evidence of easing inflationary pressures will be needed to justify such a move.
